Bitcoin (BTC) is currently trading at $4153 at the time of this writing after plunging down from above $6200 in mid-November. Is there further downside ahead, or have we hit the bottom?
The latter is highly unlikely.
The daily Stochastic Relative Strength Index is currently hanging out in overbought territory and appears set to begin a bearish cross — suggesting selling pressure will increase in the near future. How strong this pressure will be remains to be seen, but there is little reason to be bullish in the current market conditions.
When the daily Stoch RSI comes back down, BTC may trade relatively even or it may collapse down to further levels around $3500. If things get really intense, we could be looking at levels downwards of $3200.
The weekly Stoch RSI tells a different story, however.
On a weekly timeframe, Bitcoin is currently in oversold territory. That said, there is still to fall, and it is likely that Bitcoin will bounce off of 0.000 before it performs a bullish cross. When said cross happens, it is still possible that BTC won’t even get out of oversold territory before crossing bearish again. The likelihood of a strong rally is low, to say the least.
The daily RSI for Bitcoin (BTC) has dipped lower than at any point in the first and foremost cryptocurrency’s history. After such a sharp decline, it is only reasonable that the indicator would correct. However, we are not taking this as a bullish sign. Rather, it is more likely that the RSI will meet resistance at the 36.0000 level or higher.
[bctt tweet=”Either way, we feel there is still more downside for Bitcoin (BTC) in the near-to-medium term.” username=”beincrypto”]
What do you think of the price of Bitcoin (BTC) right now? Let us know your thoughts and predictions in the comments below!
Disclaimer: The author of this article holds Bitcoin (BTC). This is not financial advice, and should not be construed as such. It is for informational purposes only. BeInCrypto is not responsible for any financial decisions made by any readers. Trading in cryptocurrency is notoriously volatile and we recommend anyone interested consult with a trained financial professional.